Friendly Competition While ContraVest has garnered a reputation for developing quality product on time and on budget, there are only so many ways to develop multifamily communities. In fact, it’s not uncommon for its third-party projects to compete with the projects that it owns or with other third-party projects it develops.
“There is similar product in everyone’s production line,” explains McDaniel. “What makes the difference is the location of the property, some amenities within the property and the on-site staff. The ability to sell and manage your product is what really counts. Crown molding is not the determining factor on why people rent.”
While ContraVest’s projects are often competing for the same renter as its third-party clients like Colonial Properties Trust, there is respectful competition between the two companies, says Ed Wright, senior vice president at Colonial. “We’re glad to have them as competition,” he says. “They are fair in their business dealings with us and, we don’t feel like they use anything in the market to their advantage that would be unfair.”
Ingraham says that competition can be a problem, but at the end of the day he realizes he can’t control who ContraVest works for. And, Ingraham continues to work with ContraVest because he gets what he’s looking for: “people of high integrity, that play fair and are efficient producers and good builders.”
However, Ogier doesn’t see building product for other companies as competition to the properties ContraVest owns. “The projects are going to be built whether we build them or someone else does,” he explains. “Why not take advantage of the opportunity?”
By the end of 2002, ContraVest hopes to complete six development deals and six general contracting deals which will be worth about $150 million. “Right now, we’re experiencing a negative real estate market, which in our philosophy bodes well for a positive market,” says Ogier. “I am going to make sure we take every advantage of the downside in 2002 so that we’re prepared when the market turns. I believe 2003 and 2004 are going to be very good markets. Now is not the time to sit back and wait for the economy to figure itself out.”